SWIFT’s KYC Adverse Media service. For enhanced Customer Due Diligence (CDD)
What is the KYC Adverse Media service?
KYC Adverse Media is a new added-value service from SWIFT in partnership with Dow Jones, provided through The KYC Registry. It gives KYC Registry users access to the Dow Jones Risk & Compliance database of press articles about financial institutions, and to ‘profile notes’ – official statements and announcements from regulators and authorities (e.g. enforcement actions, investigations, fines, etc.). The service supports customer due diligence and KYC processes with correspondents and potential correspondents.
This subscription-based service is only available to KYC Registry customers. However, the news database also contains information about financial institutions that aren’t part of The KYC Registry, making it even more useful. Banks don’t need permission from their counterparty to access negative news information about them. This differs from other information offered through The KYC Registry, where banks retain ownership over their KYC data and documents and choose which institutions they want to share them with.
How will using KYC Adverse Media benefit my institution?
The collection and analysis of news articles and regulatory announcements is an important part of the KYC process. Regulators expect financial institutions to perform Customer Due Diligence (CDD) in line with each correspondent’s risk rating, and have cited the public availability of negative articles in the press in recent enforcement actions.
Given the number of publicly available sources, collecting such information is time-consuming. If manual internet searches are used, it can be difficult to isolate information that is reliable and relevant, or to relate a news item to the specific legal entity affected, rather than a wider FI group, making it harder to make good, risk-based decisions. Using newsfeed suppliers can be expensive, particularly for small and mid-sized banks.
The KYC Adverse Media service will help increase transparency and consistency in KYC information by making high-quality news and regulatory information affordable for institutions of all sizes.
Why should I choose KYC Adverse Media over other services?
KYC Adverse Media offers a number of unique features that add particular value:
- It maps news items to specific entities, enabling better, more targeted decision-making.
- The subscription covers all entities within the same KYC Registry contract (KYC Group), with no restriction on the number of users or articles. So you always know your total costs upfront.
- In the future, the institution mentioned in the article will be able to add notes of explanation or official statements to the coverage, further enhancing transparency.
The KYC Adverse Media service includes content from more than 32,000 news publications worldwide. Content dates back to 2013 (and is being extended to 2012), with more content being added daily.
It’s available on subscription to all institutions that have joined The KYC Registry, regardless of whether they have already contributed their data to the Registry or not.
How easy is it to get up and running?
Once you have subscribed, all your KYC Registry users will have immediate access to the KYC Adverse Media database – no installation or onboarding is required.
Users will have access to a ‘KYC Adverse Media’ tab on the KYC Registry portal, as well as links to adverse media information when they do status checks on specific entities. A majority of these articles will already be displayed on the same screen as the entity’s KYC data and documents in The KYC Registry, meaning users won’t need to perform keyword searches. At the same time, they will have the option of searching for content about institutions that are not (yet) Registry members.
How can I order KYC Adverse Media?
You can order KYC Adverse Media when joining The KYC Registry or sign up for it later using the SWIFT e-ordering system. An annual subscription fee provides unlimited access to KYC Adverse Media for all of your KYC Registry users. The fee is based on the size of your institution. Contact your SWIFT Account Manager for more details.